$DRV is the only position on my books at the moment. It is a way to play to coming collapse in real estate, should the market break to the downside here. It is somewhat of a gamble here as many components in the $IYR sit on support, but it is a risk the could very well pay off big, should this market crack.
Let’s take a look at a few components in the Real Estate index:
1.) $SPG
2.) $NLY:
3.) PSA:
4.) $EQR:
5.) $HCP:
6.) $VNO:
7.) $BXP
As you can see from the charts above, it’s do or die time for the $IYR. With the Hang Seng deep in the red tonight, and futures dropping like it’s hot, I like my chances being long the cocaine inverse Real Estate ETF, $DRV. I may look to add to my position first thing in the morning.
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Thanks for the charts RC, i decided to pick up a 2/3 pos in DRV mid day on Fri and skip the AGQ for now, I think there could be one more flush out before it(/SI) really bounces…
nice pickup, $DRV is a monster in the making.
some of those charts look just like the xlu. do you think the utes may be next?
Utilities tend to be defensive in nature, they won’t crack like some of these REITs will.
Lots of downside in those reits
With SPG, it makes sense to look for the reaction at the 200-day, but when we look back at aug 8, it didn’t really get very ugly beyond that one day, it had a powerful reversal the following day right back above the 200. Should it break the 200, how can we judge whether the signal is real or false this time around?
That’s the tough part, to soon to tell.
Waiting for the downside to buy as a hedge against inflation. Sold some aussie office trusts before the top in 2008. Missed a little bit of upside but looking to buy back in at 60% of what I sold at. Price holding tantalisingly (is that word) just above my target buy price but looks like my opportunity is approaching.
SRS
Crushing it on the DRV idea. Thanks!!!
$IYR divergence nailed this failed bounce attempt in the market
market is in a breakdown of a rising channel, but also SPY shows a H+S forming with 110 being the crucial level, if not 112.